Irony Alert: USC Real Estate Finance Professor Busted For Real Estate Scam
If you are a connoisseur of irony as I am you will appreciate this story. A professor at the University of Southern California who taught a course in real estate finance being busted for a real estate fraud scam and now faces 20 years in jail. That one sentence is filled with irony in itself. But it gets better.
The professor, Barry Landreth, never invested the money and that was probably the wisest thing he could do. The funds were formed at the top of the market and most likely the investments would have taken a bit of a hit as they were aimed at Chicago and Las Vegas, cities where there was a great deal of speculation.
But this guy was not smart enough to sit on the money and wait for opportunities. He instead took the money and invested in lifestyle toys such as a Cadillac Escalade and show horses. And now for the next 20 years he will be watching the world through the bars of a prison cell. I hope his students learned a lesson watching him.
Barry Landreth, 37, faces up to 20 years in federal prison when he is sentenced June 4. He pleaded guilty Monday to one count of wire fraud.
In 2005, Landreth, a part-time instructor of real estate finance, put together a group of investors in projects dubbed Discovery Las Vegas LLC and Discovery Chicago LLC.
Doing business as Webster Realty Investors, Landreth promised 190 percent returns in 30-45 days, but prosecutors said he never invested the money in the two projects.
Unhappy investors, some of whom worked with Landreth, alerted federal authorities and Landreth was arrested last year. At least two students said they invested $100,000 or more with Landreth, according to a court affidavit.
San Jose Mercury News – Former USC lecturer pleads guilty in investment fraud case.
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Comment by Lucy on 8 March 2007:
Good post. Glad to see justice was served in this case. Ralph Roberts is quoted in the 2007 edition of the Swanepoel Trends Report by saying that more and more people are being sent to jail on charges of bank fraud and conspiracy to commit mortgage fraud. This is a major concern to me. What do you think? Will it get worse before it gets better?
Pingback by USC Real Estate Finance Professor Sentenced to 6 Years Lockup For Real Estate Fraud — The Real Estate Bloggers on 11 July 2007:
[...] I said in my post, Irony Alert: USC Real Estate Finance Professor Busted For Real Estate Scam, when Barry Landreth was busted for stealing 1.5 million dollars in a real estate scam, that a true [...]
Comment by Rachel Ayers on 13 August 2007:
I am very ashamed of the turn of events in Barry’s life. He came from a Christian family and was “raised right”.
I am from the same small town were he grew up and I hope he knows how disappointed we all are of him.
Comment by Chris on 8 February 2008:
I would feel less sorry for him if he hadn’t abused his professorship to con these people. 20 years is a LONG time for a non-violent crime though. I think even the victims would feel happy if he spent as long as three years in jail for his crime.